Thursday, July 17, 2014

We are pleased to inform you that 5 Hidden Gems – Potential 5-Baggers within 5 Years Report Update - Apr'14 has been released by us. Original report 5 Hidden Gems - Potential 5-Baggers within 5 Years was released on 26th July’13 when there was lot of
pessimism around the market and we find it as one of the best time to invest in
some of the fundamentally strong small cap companies. This report update
includes company’s performance, recent updates and development in these companies along with our views and recommendation with buy / sell / hold decisions along with fair price to accumulate any of these stocks.

Since beginning of the year, stock market was in
control of bulls with strong positive bias towards Ab ki Baar – Modi Sarkar
(this time – Modi led Government) and later stock market further rallied on formation of NDA government. Currently, market are consolidating and any correction would be considering as buying opportunity as long term outlook is bullish for equities. Bear
market of last 6 years (since Jan 2008) is already over and equities will continue to outperform
all other asset class in coming years.

You will agree that Investment decisions for long term can’t
be taken by timing the market movement. It is important to understand the Industry
potential, company’s fundamentals and valuations with a long term perspective.
We evaluated these stocks with a long term view (2-5 years), we firmly believe
that good quality businesses in India will continue to deliver strong double
digit growth and its always logical to invest in those businesses which deliver
better returns than any other asset class.

Our team published special report 5 Hidden Gems -
Potential 5 Baggers within 5 Years with an objective to achieve average
annualized returns of 38% each year to achieve 5-Bagger returns in period of 5
years. As illustrated in table below, if these 5 companies generate returns
on your investment @ 38% annually, your investment will be 5 fold in period of
5 years. Even if we take conservative scenario considering that only one out of
five achieve CAGR of 38% and remaining four delivers CAGR of 20%, your
investment will be trebled (3 times) in period of 5 years which is also good
compared to returns from other asset classes or major indices - Sensex and
Nifty.

(click on the image icon, if not visible properly)

However, our team while selecting these stocks was confident enough to achieve 5 times
returns in period of 5 years by monitoring performance of these companies and
taking corrective measures in case any of them does not perform up to our
expectations.Few important
parameters which have been looked by our equity analysts while finalizing the
stock selection are as under:

Market leader in
the business / any one segment in which the company is operating in.

Prudent
Management with promoters increasing their shares holding in the company

Zero or
negligible debt on books with healthy cash flows.

CAGR of above 15%
with increase in operating and net profit margins in last 5 years.

Consistent
dividend payment with dividend yield above 2% in last 5 years

Increasing EPS,
single digit PE ratio with ROE and ROCE above 20% in last 5 years.

Zero or
negligible share holdings of Institutions (FIIs & DIIs) to get first mover
advantage.

Each parameter is equally important and plays a vital role to
ensure that you get healthy returns on your investment with limited downside
risk in long term. One of the important key to successful investing is to pick
the right business at decent valuations. Once you buy shares, you own a part of
company’s business. We at Saral Gyan recommend good businesses to buy with long
term view and any change in our stock views will be based on strong structural
trend and not on any short term movement.

We are glad to share that 4 out of 5 Hidden Gems have given astonishing returns in the range of 175% to 350% within first 12 months and our investment made in these stocks have already multiplied by more than 3 times, we have still 4 years left to get our investment multiplied by 5 times which we are sure will be achieved much sooner than later.

(click on the image icon, if not visible properly)

Average returns of our 5 Hidden Gems as on date is 231% compared to Sensex returns of 29% (19748 to 25561) and Small Cap index returns of 85% (5516 to 10193) since 26th July’13, hence our 5 Hidden Gems stocks have outperformed small cap index by 146% and Sensex by whopping 202%.

As Sensex and Nifty are at all time high, we have not
suggested aggressive buying in these companies at current levels. But to ensure
that we do not miss good investment opportunities, we have suggested initial
allocation of 2-3% which can be increased further at suggested levels in the report in case of correction in
stock prices.

Note: If you wish to receive our Special Report
5 Hidden Gems : Potential 5-Baggers in 5 Years – Apr’14 update, simply subscribe to
Hidden Gems or any of our Hidden Gem combo pack and we will send you the report without any extra charges! To know more about our services and annual subscription charges, click here.

In case of any queries, simply write to us. We will be delighted to assist you!

Saral Gyan Capital Services

Disclaimer: The articles published in www.saralgyan.in is for the personal information of the authorised recipient and is not for public distribution and should not be reproduced or redistributed without prior permission.

The information provided in the website is from publicly available data and other sources, which we believe, are reliable. Efforts are made to try and ensure accuracy of data however, Saral Gyan Capital Services shall not be liable for loss or damage that may arise from use of the published posts/comments in the website. The published articles are purely for information purposes and does not construe to be investment recommendation/advice or an offer or solicitation of an offer to buy/sell any securities. The opinions expressed are our current opinions as of the date appearing in the material and may be subject to change from time to time without notice.

Investors should not solely rely on the information contained in the website and must make investment decisions based on their own investment objectives, risk profile and financial position. The recipients of this material should take their own professional advice before acting on this information.